After all this time, Sprint is finally ready to let go of the Nextel iDEN platform that it acquired when it purchased Nextel Communications in 2005.
With last week’s FCC approval of 3G and 4G deployment on the ESMR band that currently runs iDEN, Sprint can now officially begin the process to eliminate iDEN, thus reducing the huge costs associated with running a network that required maintaining old, expensive equipment. While Sprint was previously shutting down iDEN cells as part of the Network Vision upgrade, it claimed it was only eliminating excess capacity to reallocate for CDMA2000 and LTE services.
Now, Sprint has announced that it will earnestly shut down all iDEN services by June 30, 2013. Because iDEN’s Push to Talk service is used by businesses and government agencies primarily, Sprint will begin notifying all iDEN customers that they need to replace iDEN equipment with Sprint Direct Connect CDMA equipment on June 1. All Nextel-branded products and all devices offering iDEN connectivity will be discontinued, which includes Boost Mobile’s iDEN products.
The secured credit facility expires in March 2017 and benefits from a cost of funding of approximately 6 percent provided by AB Svensk Exportkredit and comprehensive insurance cover from EKN, the Swedish Export Credit Agency. Deutsche Bank acted as one of the Mandated Lead Arrangers and as Facility Agent.
The covenants under the secured credit facility are similar to those of Sprint's revolving bank credit facility and those of the guaranteed Notes due 2018 and the guaranteed Notes due 2020.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 56 million customers at the end of the first quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint .
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